Medplus Health Services Ltd. · NSE:MEDPLUS
Medplus Health Services — Q1 FY2024 Earnings Presentation
27 slides from Medplus Health Services's earnings presentation, Aug 7, 2023
Slide 1: Cover letter to stock exchanges
MedPlus Health Services Limited August 7, 2023 The Listing Department The Listing Department BSE Limited National Stock Exchange of India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kuria Complex, Dalai Street, Fort, Bandra (East), Mumbai 400 051 Mumbai 400 001 Symbol: MEDPLUS Scrip Cod
Slide 2: First Quarter FY2024 Investor Presentation
FIRST QUARTER FY2024 INVESTOR PRESENTATION Corporate information Performance update Financial results AUG 2023
Slide 3: Safe Harbour
Safe Harbour This presentation and the accompanying slides (the “Presentation”), which have been prepared by MedPlus Health Services Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for
Slide 4: Executive Summary
Executive Summary Executive Summary: Q1FY24 1 Revenue Growth 4 Stable operating performance of mature Revenue has grown by 29.2% vs Q1 FY23 stores (>12m) Operating EBITDA: ₹ 452mn Store Level EBITDA margin: 8.9% Store Level Operating ROCE: 49.1% 2 Accelerated store expansion Addition of 153 stores i
Slide 5: The MedPlus Story
The MedPlus Story Overview MedPlus caters to the healthcare and 2006 17 years c.931m+ household needs of Started in Hyderabad A Trusted Brand Bills Cut Since Inception the neighborhoods we operate in We are omni- 3,975 stores 7 581 channel: Digital and Stores States Cities neighborhood stores MedPlu
Slide 6: MedPlus – Leader In The Attractive Pharmacy Space
MedPlus – Leader In The Attractive Pharmacy Space Overview Fastest Growing Retail Segment Large Headroom to Grow 30% Pharmacy 25% 25% Food & Grocery 22% Jewellery 21% 20% Apparel 16% 16% 0% 20% 40% 60% 80% 100% 15% 14% Organized Retail Unorganized 10% 8% Better Unit Economics 5% Pharmacy: High reven
Slide 7: Cluster Based Network Enables Profitable Omni-Channel Service
Cluster Based Network Enables Profitable Omni-Channel Service Overview Stores As On Jun-23 Strong Cluster Based Network Strong network of 3,975 stores across Metros, Tier-One, Tier-Two and beyond. 3,975 stores 2- hour delivery Ability to service 100% market – acute + chronic Online only players cann
Slide 8: Scale Allows A Large Private Label Basket: 1300+ SKUs
Scale Allows A Large Private Label Basket: 1300+ SKUs Overview Pharma Over 1,066 products covering Chronic, Acute, OTC & Other Pharmaceutical products Non-Pharma Over 293 products covering, packaged food, baked goods, dry goods, cleaning products, cosmetics and toiletries Q1FY24 6
Slide 9: Poised for Growth
Poised for Growth Overview Key Pillars Of Growth MedPlus has an established base of operations in seven key states. Therefore, we will: Growth in existing clusters and • Further grow in cities where we have market leadership. Metro and Tier - One followed A by Tier - Two and beyond develop new clust
Slide 10: Q1 FY2024 Highlights (1/2)
Results Update Q1 FY2024 Highlights (1/2) ₹ 12,843m Revenue ₹ 2,734m Gross Margin • ₹ 2,906m increase over Q1FY23 • 21.3% gross margin (0.1% yoy, -1.3% 29.2% yoy qoq) • ₹ 313m increase over Q4FY23. 2.5% qoq • 0.6% increase in private label over Q1FY23 153 Store Net Additions Stores > 12 months • 168
Slide 11: Q1 FY2024 Highlights (2/2)
Results Update Q1 FY2024 Highlights (2/2) Revenue, ₹m Gross Margin Operating EBITDA EBITDA, ₹m 12,530 12,843 22.6% 953 11,903 11,206 22.2% Consolidated 831 807 9,937 21.7% 706 3.2% 628 21.3% 3.1% 21.2% 2.5% 371 406 2.2% 2.3% 283 291 222 994 12,382 12,690 22.0% 11,765 21.7% 860 11,100 21.4% 846 Pharm
Slide 12: Stores Added In Last 12 Months
Results Update 995 Stores Added In Last 12 Months As On Jun-22 As On Mar-23 As On Jun-23 Presence 2,980 3,822 3,975 We are present in stores stores stores key 7 states, accounting for c.38.4% of India’s population2. The key urban centers are: Bangalore, Chennai, Hyderabad, Kolkata, Mumbai, Nagpur, P
Slide 13: Stores Added In Last Quarter
Results Update 153 Stores Added In Last Quarter Q1 FY24 Openings Q1 FY24 Closures Q1 FY24 Closure Reasons We opened 168 168 15 stores in Q1FY24. stores stores There were 15 closures 6 7.9 7.1 8 1 4.7 Relocation Franchisee withdrawn Others Average age (years) 1. Color index for pie-chart as below: Me
Slide 14: Young Store Network: 27% Less Than 12 Months Old
Results Update Young Store Network: 27% Less Than 12 Months Old Pharmacy: Count Pharmacy: Age Structure of Stores1 Stores 2,980 3,328 3,557 3,822 3,975 Openings 4,000 153 30% 30% 27% 33% 32% 265 Maintaining an 3,500 229 increasing pace of 348 store openings 3,000 232 15% 22% 16% 17% 19% 2,500 2,000
Slide 15: Profitable Older Stores: 12+ Months
Results Update Profitable Older Stores: 12+ Months Store Level Revenue Growth1 Store Level EBITDA Margin Store Level Operating ROCE2,3 15.3% 16.0% 10.3% 60.0% 60.8% 60.5% 9.7% 10.0% 55.9% 9.5% 8.9% 49.1% 10.0% 10.9% -8.7% Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q2FY23 Q3FY23 Q4FY23 Q1FY24 Q1FY23 Q
Slide 16: Revenue Mix: Increasing Share Of Private Label
Results Update Revenue Mix: Increasing Share Of Private Label Revenue Mix: By Product Category Revenue Mix3: By Location of Stores 2.4% 2.2% 2.4% 2.2% 2.3% Product mix 4.6% 5.0% 5.1% 5.7% 5.6% 9% 9% 10% 10% 11% 8.1% 8.9% 8.6% 8.4% 7.8% Trend of increasing share 10.5% 10.7% 22% 22% 10.8% 11.0% 10.9%
Slide 17: Omni-channel: Profitable With Negligible Acquisition Costs
Results Update Omni-channel: Profitable With Negligible Acquisition Costs Channel Revenue Channel Delivery Pincodes1 and Delivery Hubs 760 6.6% 100% 749 Hubs 391 453 583 630 618 Home Delivery Omni-Channel 740 6.4% Our online 2,273 715 80% 2,158 presence grows 720 709 2,014 on the back of 6.2% 1,877
Slide 18: Income Statement
Results Update Income Statement Snapshot of Income Statement, ₹m Q1FY24 vs. Q1FY24 vs. Q1FY23 Q4FY23 Q1FY24 Q1FY23 (yoy) Q4FY23(qoq) Revenue 9,936.5 12,529.8 12,843.0 29.2% 2.5% Gross Margin 2,103.1 2,830.0 2,734.0 30.0% -3.4% Gross Margin 21.2% 22.6% 21.3% Expenses 1,881.4 2,423.8 2,443.2 29.9% 0.8
Slide 19: Income Statement: Business Segments
Results Update Income Statement: Business Segments Snapshot of Income Statement, ₹m Q4FY23 Q1FY24 Pharmacy Pharmacy Diagnostic Others Total Diagnostic Others Total Retail Retail Revenue 12,382.3 119.3 28.3 12,529.8 12,689.9 139.0 14.1 12,843.0 COGs and Expenses 11,935.3 156.4 31.9 12,123.7 12,346.5
Slide 20: Operating EBITDA Deep Dive
Results Update Operating EBITDA Deep Dive Operating EBITDA Bridge: From 12+ Months Stores to Consolidated, ₹m Operating EBITDA Q1FY24 18
Slide 21: Balance Sheet
Results Update Balance Sheet Snapshot of Balance Sheet, ₹m Jun-22 Mar-23 Jun-23 Assets Non Current Assets PPE and CWIP 2,108.1 3,122.4 3,133.2 Intangible assets 476.7 489.9 497.0 Right-of-use asset 6,528.5 8,022.0 8,338.4 Others 1,492.9 1,525.7 1,568.6 Total Non Current Assets (A) 10,606.2 13,160.0
Slide 22: Capital Productivity
Results Update Capital Productivity Working Capital Cycle, days ROCE2: Operating EBIT/ Avg. Capital Employed NWC (days) 9.4% 66 61 63 64 66 8.8% Year 1 Stores 49 48 47 47 47 6.8% 114 days inventory (on 5.5% Year 1 stores 39 revenue) 37 4.4% 36 35 35 Stores Older Than 12 months 22 23 22 41 days inven
Slide 23: Cash Management
Results Update Cash Management Cash Management, Q1FY24, ₹m Operating Cash Flow ₹ 297m Free Cash Flow ₹ -405m PBT+ Inc. in Taxes Capex Payment Interest Decrease D&A+ Int. Working of lease received in cash of Lease Capital liabilities & others and cash Liability1 equiv.3 + Others2 1. Computed as per I
Slide 24: Appendix
Appendix A. Board and key management B. Glossary 22
Slide 25: A. Board and Key Management
A. Board and Key Management Appendix Committed Board Experienced Management Team Gangadi Madhukar Reddy Anish Kumar Saraf Atul Gupta Dr. Bhaskar Reddy Dr. Surendranath Mantena Founded MedPlus and has MD at Warburg Pincus Investment partner at COO–Outlet Operations COO–MedPlus Mart led it since incep
Slide 26: B. Glossary
B. Glossary Appendix Term Description Metro: Bengaluru, Chennai (and Avadi), Hyderabad, Kolkata (and Howrah), Mumbai (and Thane) City Categorization Tier One: Ahmednagar, Baramati, Kharagpur, Nagpur, Nashik, Panruti, Pune, Ranaghat, Vijayawada, Visakhapatnam (internal) Tier Two: Hundred and Nine cit
Slide 27: MedPlus Health Services Limited
MEDPLUS HEALTH SERVICES LIMITED www.medplusindia.com COMPANY SECRETARY Manoj Kumar Srivastava cs@medplusindia.com INVESTOR RELATIONS Prasad Reddy/ Tanushree Chaurasia ir@medplusindia.com MEDIA AND PRESS ENQUIRIES marketing@medplusindia.com
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